Toyota Kenya partners with NIC Bank to offer Asset Finance customers a 90-day repayment holiday

By Felix Boyd

In Summary

• As part of the agreement, Toyota Kenya is offering a free one year comprehensive insurance with each purchase of the Toyota Hilux Single Cabin
• The Hilux single cabin pick-up is a hardy all-terrain vehicle with the largest load capacity in the pick-up segment
• Under the agreement NIC Bank, will offer up to 95% financing on the vehicles for a duration of between one and five years
• The offering is meant to help customers manage the initial costs of acquisition and create the flexibility required in making loan repayments thereafter

Toyota Kenya Ltd and NIC Bank PLC have entered into a partnership that would enable customers to purchase a brand new Toyota Hilux at interest rates as low as 7.74%. In addition, any customer purchasing a Toyota Hilux would have access to an extended 90-day repayment holiday. NIC Bank PLC is the first bank in East Africa to offer such an attractive repayment holiday.  Speaking at the launch, Alan Dodd, Executive Director for NIC Bank said,

“We understand the unique challenges facing individual business owners and SMEs following the economic downturn last year and the adverse impact on cash flows, and want to be there to support our customers as they seek quick and convenient financing to meet their needs.”

As part of the agreement, Toyota Kenya is offering a free one year comprehensive insurance with each purchase of the Toyota Hilux Single Cabin. According to Toyota Kenya Managing Director Arvinder Reel, the partnership is aimed at customers across all business sectors in the market.

“We believe that this partnership will help our customers have easy access to financing.  Offering a 90 day repayment holiday and free one year comprehensive insurance will help them manage the initial costs of acquisition and create the flexibility required in making loan repayments thereafter,” Mr. Reel added.

The Hilux single cabin pick-up is a hardy all-terrain vehicle with the largest load capacity in the pick-up segment. It is fuel efficient with enhanced safety features making it ideal for both private and commercial use.

The total vehicle market within Kenya has been on the decline and saw a further drop of 22% in 2017 some of which is attributable to lack of financing Mr. Reel added. The decline is attributable to decline in demand within the bus and truck segment coupled with the depressed investment environment during the electioneering period with most investors adopting a wait and see approach.

Toyota’s market share however increased by 5% from 15% in 2016 to 20% in 2017 despite the unfavorable operating environment.

Under the agreement NIC Bank, which is Kenya’s leading asset finance provider controlling 30% of the market, will offer up to 95% financing on the vehicles for a duration of between one and five years.